MANILA — The financial record of the Philippine Health Insurance Corporation (PhilHealth) took centerstage at the second oral argument of the Supreme Court on the petitions against the P89.9 billion fund transfer from PhilHealth to the national treasury.

Associate Justice Amy Lazaro-Javier presented the Commission on Audit reports on PhilHealth in 2021 showing PhilHealth had bigger liabilities than assets. 

The 2021 restated financial statements of PhilHealth showed it has liabilities worth P488.5 billion, but its assets are only P362.4 billion.

In 2022, PhilHealth financial statements showed assets grew and exceeded liabilities. However, Lazaro-Javier noted that there was COA statement saying it did not express an opinion on the financial statement because COA has not been able to obtain sufficient appropriate audit evidence to provide basis for an audit opinion.

Lazaro-Javier asked PhilHealth Senior Vice President Renato Limsiaco, Jr. if they knew this even before transferring funds to the national government. 

She also asked if PhilHealth has paid all debts to hospitals or other claims before remitting billions of pesos.

“Has PhilHealth paid all the recorded and recognized claims before it transferred the funds to the Treasury?” Lazaro-Javier asked.

Limsiaco responded, “Your honor, in a shorten cut off date, your honor, definitely hindi ho natin mababayaran lahat.”

Limsiaco said they have not yet paid all claims, yet transferred the money to treasury. But he insisted that PhilHealth has a stable financial health.

“The corporation has the capacity to continue its operations given that the corporation has investment portfolio enough to cover requirements of the corporation in terms of benefit payments,” Limsiaco said.

Solicitor General Menardo Guevarra also defended the transfer of funds saying those were excess funds and PhilHealth has actually improved their services.

Petitioners against the fund transfer earlier asserted that PhilHealth has low funds which is why the state of the healthcare sector in the country is not good. They said the funds must be returned to PhilHealth to be used for the members’ health needs.

“Malinaw po na hindi sapat ang pondo ng PhilHealth para doon sa sinasabing nating reserved fund nito,” said former Finance Usec. Cielo Magno.

Dr. Minguita Padilla added, “Paano mo masasabing excess? Unused, so inefficient- hindi ginagamit, pero hindi ibig sabihin excess. Unconstitutional yun, illegal sa amin.”

The Supreme Court has set the next oral argument on the case on March 4, 2025.